Movement along the aggregate expenditure line is caused by a change in the level of income.
a. true
b. false
a. true
You might also like to view...
In the United States between the 1970s and the 2000s, the productivity of labor increased. This increase led to
A) an increase in the demand for labor. B) no change in either the demand for or the supply of labor. C) a decrease in the supply of labor. D) a downward shift of the production function. E) an increase in the supply of labor.
For small investors, the best way to pursue a "buy and hold" strategy is to
A) buy and sell individual stocks frequently. B) buy no-load mutual funds with high management fees. C) buy no-load mutual funds with low management fees. D) buy load mutual funds.
The incidence of a payroll tax
a. depends upon whether it is levied on the employer or employee. b. is the same whether it is levied on the employer or the employee. c. is more heavily on the employee as demand for labor becomes more elastic. d. is more heavily on the employer as demand for labor becomes less elastic.
Compared to the labor market outcome when there are no payroll taxes, imposing a payroll tax on labor will typically result in
A. workers receiving a lower wage net of taxes. B. a decrease in overall employment. C. firms paying a higher wage. D. an increase in dead weight loss. E. All of these are possible outcomes.